Business Broker Brief

Episode 6, Mini Episode #2

This mini episode explains the opportunities BBIC has in place to give buyers a competitive edge and how you can become a business broker. To give buyers a competitive edge, BBIC has a forum for buyers to gather and learn about opportunities in our inside track. For specific buyers, they will find businesses for them that are not on the market. We approach businesses that are not listed to create new opportunities for our buyers. Listen in to learn how you can become a business broker. You’ll need entrepreneurial DNA, business ownership experience, and handle roller coaster rides while smiling through the whole thing.

Episode 6, Mini Episode #1

People are biased against franchises; however, they could buy an existing franchise that is already up and running with immediate cash flow. Many buyers who consult with BBIC are biased against franchises because they think it’s only food and auto repair. There are pros and cons to both independent companies and franchises. Having a broker to help you navigate what’s best for you is so valuable because BBIC will bring up the mental and emotional realities that exist when you buy a business.

We talk about people who are becoming business owners, the business buyer ecosystem, and first-time business owners in an unfamiliar industry. BBIC works with folks who are leaving corporate America and wanting to be their own boss. Most likely, they come from an entrepreneurial family, and they are more likely to buy something that is already running rather than starting from scratch. People are biased against franchises; however, they could buy an existing franchise that is already up and running with immediate cash flow. We touch on the mental and emotional realities that exist when you buy a business. Plus, we explain why the most valuable type of business is one that can run without the owner being there. Stay tuned as we discuss how to establish relationships as a broker, about finding recession-resistant companies, and how to score hidden deals.

Episode 5, Mini Episode 2

How do you create that maximum effectiveness through marketing? This mini-episode breaks down the importance of quality vs. quantity in the sales and marketing teams. So often, marketing thinks their role is to create volume, when they really should focus on effectiveness or quality. If you only focus on quantity, you’re eroding the efficiency of the sales team. BBIC ensures both teams communicate and are in collaboration.

Episode 5, Mini Episode #1

This mini-episode teaches the importance of aligning sales and marketing teams and how it will help increase the conversion rates for brokers. When sales and marketing work together, they will have better achievements and more significant numbers. When they are not communicating effectively, you will not have the luxury of the best person assisting you. There has to be accountability. The marketing team has to be confident that the sales team can take that lead and convert it into a sale: the higher conversion rates, the better.

We talk about the importance of aligning sales and marketing teams and how it will help increase the conversion rates for brokers. When sales and marketing work together, they will have better achievements and more significant numbers. When they are not communicating effectively, it means you will not have the luxury of the best person assisting you. Which companies have the best communication between sales and marketing? Well, tech companies try and stay on the cutting edge, whereas distribution industries tend to operate in an old school manner. Therefore, tech companies generally have better communication between their departments. When a business is being sold, the sales and marketing teams will both have an impact on the sale. Plus, we touch on the communication divide between millennials and baby boomers - the medium a broker uses will differ by both industry and geographical area. Stay tuned as we speak about trust-building while coaching with business owners and how geographical location will affect a broker’s business.

Episode 4, Mini Episode 2

This episode breaks down what defines the qualitative aspects of a business and how to net the most at the table. The value of a business can swing up and down based off of the qualitative aspects of the business. Some qualitative aspects can include the industry you are in - is it growing or shrinking? Next, it’s important to look at the businesses vendor and customer list, the more diversified customer base the better. Where are we at in the economy, and how does that impact your business?

How can you net the most at the table? Net is what you walk away with at the closing table. It will depend if they are willing to receive payments over time, or if they want it all upfront. Net is related to tax, time, and effort.

Episode 4, Mini Episode 1

When you have a family business that’s been around for many years, multiple family members involved can be tough to navigate. How are those family members going to transition, or how are they going to be replaced? Peggy DeMuse covers key personnel and how the value of the business is determined. They talk about their dream and where they want to go with their business. Next, we look at the cash flow that would be available for the new buyer to pay themselves, pay down debt, and have some cushion leftover.

In this episode, we talk about the qualitative factors to consider for getting the best net at the closing table. When you think about buyers, sellers, and businesses, a lot goes into the transaction - there are qualitative and quantitative aspects of any sale. The valuation conversation should first start with financial statements. With a family-owned business, the emotional attachment can be substantial. When you have a family business that’s been around for many years, multiple family members involved can be tough to navigate. How are those family members going to transition, or how are they going to be replaced? Stay tuned as we speak about key personnel and how the valuation can be comprised.

The business brokerage landscape continues to evolve. New brokerage franchisors and new offices are springing up all the time. We are even starting to see 'virtual brokerages' appear on the horizon.

This show presents a conversation with the biggest names in the industry, who will share their thoughts and perspectives, as well as their predictions for the future that could roil the entire industry.

You’ll hear from BBIC’s CEO Brian Slipka as he talks with Sunbelt Minneapolis President Chris Jones and one of Sunbelt’s most successful brokers, Peggy DeMuse.

Learn more and connect directly with one of BBIC’s experts at www.BBICnow.com.